Stadtler Posted April 25, 2013 Report Share Posted April 25, 2013 Can someone help me with this economics question.Why do firms have a demand for pollution? What factors might cause a different demand curve for pollution for each firm? Does anyone have any ideas? as I don't know where to find answers for this. Also if i do how am i suppose to put it into my own words?Thanks Reply Link to post Share on other sites More sharing options...
Arrowhead Posted April 25, 2013 Report Share Posted April 25, 2013 Are you trying to draw a graph for a negative externality of production? Because firms don't want "pollution," they have a demand for the products that in their production cause a lot of pollution, creating a negative externality of production that results in a dead weight loss to society. 1 Reply Link to post Share on other sites More sharing options...
-._._.- Posted April 25, 2013 Report Share Posted April 25, 2013 Yeah. It's not that they want pollution. It's just that the production of their goods result in a negative externality (pollution). Reply Link to post Share on other sites More sharing options...
cricketcrazynerd Posted April 25, 2013 Report Share Posted April 25, 2013 Is this from Market Failure 1.4 (negative externalities of production and consumption)? If so, I'm studying the same topic at the moment and I'm pretty sure no company wants to kill the planet by wanting pollution. Pollution just counts as one of the negative externality things, which they have to pay tax for...which can shift the supply curve...Hopefully, maybe I kinda helped in some way or another (I'm just a bit confused by your post...) Reply Link to post Share on other sites More sharing options...
Stadtler Posted April 26, 2013 Author Report Share Posted April 26, 2013 I think the 1st question is 'Why firms have a demand for pollution permits'? so the answer is just because they pollute?I don't know how i can expand that question more as it is suppose to be 200 words for each question.Also the second question 'What factors might cause a different demand curve for pollution for each firm'? I just don't know how i can find information.. Reply Link to post Share on other sites More sharing options...
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